(1)This section applies where a member of a registered society has made a nomination under section 37.
(2)On receiving satisfactory proof of the member's death, the society's committee must—
(a)transfer to a person any property to which the person is entitled under the nomination, or
(b)pay the person the full value of that property.
(3)Subsection (2) applies in relation to property consisting of shares in the society even if the society's rules provide that its shares are not transferable.
(4)But if the transfer of shares to a person in accordance with the nomination would raise the person's share capital beyond the maximum for the time being permitted in the case of the society, the society's committee—
(a)must not transfer to the person more of those shares than raises the person's share capital to that maximum, and
(b)must pay the person the value of any of those shares not transferred.
(5)The society may pay any sum falling to be paid under subsection (2) or (4) to a person under the age of 16 (“the nominee”) to—
(a)a parent or guardian of the nominee, or
(b)any other person aged 18 or over who undertakes to hold it on trust for the nominee or to apply it for the nominee's benefit and whom the society considers to be a fit and proper person for the purpose.
The receipt of the parent, guardian or other person is a valid discharge to the society for any sum paid under this subsection.